On the balance of probabilities if you own a flat in Totton you actually own a long leasehold interest over your property
It is generally accepted that a property with in excess of one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 45 years left, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| Yorkshire Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
Regardless of whether you are a tenant or a freeholder in Totton,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Totton valuers.
Muhammad was the the leasehold proprietor of a high value flat in Totton on the market with a lease of a little over 61 years unexpired. Muhammad informally approached his landlord a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years subject to a new rent initially set at £200 per annum and increase every 25 years thereafter. No ground rent would be payable on a lease extension were Muhammad to exercise his statutory right. Muhammad procured expert advice and secured an acceptable deal without going to tribunal and sell the property.
Last Winter we were contacted by Mrs Jordan López , who completed a studio apartment in Totton in July 2006. We are asked if we could approximate the price would be for a ninety year extension to my lease. Comparative flats in Totton with a long lease were valued about £270,000. The average amount of ground rent was £55 collected per annum. The lease lapsed on 8 September 2101. Considering the 75 years outstanding we approximated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 plus legals.
Mr and Mrs. Y Williams owned a one bedroom apartment in Totton in January 2003. We are asked if we could estimate the price could be to extend the lease by 90 years. Similar flats in Totton with 100 year plus lease were in the region of £168,800. The average amount of ground rent was £60 invoiced quarterly. The lease termination date was on 21 September 2081. Taking into account 55 years unexpired we estimated the compensation to the landlord to extend the lease to be between £31,400 and £36,200 exclusive of professional charges.